Question

What will happen if trade is done in rupees and not dollar

Answer 1

Answer:

Explanation:

A weak rupee against the dollar makes imports costlier. Some imports cannot be cut down such as oil, which can negatively affect India's current account deficit. In a vicious cycle, a depreciated rupee makes oil costlier since it's India's chief import. Costlier oil means costlier vegetables and groceries since transportation costs go up. Weak rupee also makes education and holidays in foreign countries more expensive. The goods that use imported components such as computers, smartphones and cars.  

Answer 2

Hola Mate

Here your answer

When a country's trade account does not net to zero – that is, when exports are not equal to imports – there is relatively more supply or demand for a country's currency, which influences the price of that currency on the world market.

Hope it helps u